Trending or Range-bound Expiry? Pre Market Analysis

Here are some of the major updates that could move the markets today:

Stocks

Adani Wilmar’s consolidated net profit rose 16% year-on-year to Rs 246 crore for the three months ended December period. Revenue from operations increased 7% year-on-year to Rs 15,438 crore in the December quarter.

Insurance behemoth Life Insurance Corporation (LIC) will announce its third quarter results today.

Honeywell Automation India’s net profit rose 18% year-on-year to Rs 106 crore for the three months ended December quarter, while revenue from operations surged 18% to Rs 1,017 crore, when compared with previous year.

Tata Consultancy Services (TCS) announced an expansion of its long-standing partnership with Phoenix Group, UK’s largest long-term savings and retirement provider, to digitally transform the latter’s ReAssure business.

Oberoi Realty reported a net profit of Rs 703 crore for the December quarter, compared with Rs 467 crore in the corresponding quarter of last fiscal. Meanwhile, revenue from operations came in at Rs 1,629 crore.

What to Expect Today?

NIFTY opened with a gap-up at 17,762. It was an up-trending day. Breakout came towards the end and it is more likely that such a breakout sustains. However, there was rejection and NIFTY closed at 17,872, up by 151 points or 0.85%.

BANK NIFTY opened flat at 41,534 and faced resistance at 41,800. BNF had a consolidating day. If BNF had supported, there would have been a fine breakout in the market in the last hour. BNF closed at 41,538, up by 47 points or 0.11%.

IT moved up by 1.5%.

The US markets moved down yesterday. The  European markets closed higher.

The Asian markets are trading in the green except for NIKKEI.

The U.S. Futures and European futures are trading in the green.

SGX NIFTY is trading at 17,900 indicating a flat opening.

NIFTY has supports at 17,850, 17,800 and 17,720. We can expect resistances at 17,915, 17,970 and 18,000.

BANK NIFTY has supports at 41,400, 41,100 and 40,850. Resistances are at 41,600, 41,800 and 42,000.

NIFTY has the highest call OI build-up at 18,000. The highest put OI build-up is at 17,800.

BANK NIFTY has the highest call OI build-up at 42,000. The highest put OI build-up is at 41,500.

INDIA VIX  dropped to 13.6.

Foreign Institutional Investors net-sold shares worth Rs 750 crores. Domestic Institutional Investors net-bought shares worth 950 crores.

We have heard multiple times that amateurs open the market and professionals close it. The second-half breakouts are likely to give continuation in the direction in most cases. However, we saw that the market faced rejection on the upside. BNF was responsible for it. Banks were controlled and this led to the failure of the breakout.

Let us see if the market gives a continuation tomorrow. The cues from the US markets are not positive. Fed officials stated that there is no confirmation regarding the pause in the rate hike cycle. Still, the Asian markets give hope for a stable opening in Nifty.

The RBI event was the highlight of the day. As expected, RBI hiked the interest rate by 25 basis points. The event did not make the day rather volatile, unlike the previous time. 

Though inflation has eased, it is still higher than the target and thus the body did not say that it is an end to the hike for the year. Still, the chances for another hike this year are less.

Germany CPI will be released today. The price action of DAX looks good and it seems that the German market can hit an all-time high before Nifty. Both indices are nearly 5% away from the high.

Reliance saw the much-awaited reversal. We will have to wait for confirmation. Anyway, the previous swing points have been broken. If Reliance and BNF stay strong today, there can be a fine breakout even if IT gives a pullback.

I will watch 17,800 on the downside in NIFTY. 17,915 can be watched on the upside.

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